September 2013 Routes onto ESA Paul Sissons

Discussion of ESA claimant characteristics, barriers to work and claim trajectories Data from DWP funded evaluation of the introduction of ESA. Undertaken by the Institute of Employment Studies. Survey fieldwork by IPSOS-MORI My views only Outline

Sissons P, Barnes H, Stevens H (2011) Routes onto Employment and Support Allowance DWP Research Report 774 Barnes H, Stevens H, Oakley J, Sissons P (2011) Ended claims for Employment and Support Allowance – qualitative research DWP Research Report 762 Barnes H, Sissons P, Stevens H (2011) Employment Support Allowance: Findings from a follow-up survey with claimants DWP Research Report 745 Barnes H, Sissons P, Stevens H (2010) Employment Support Allowance: findings of a survey of claimants DWP Research Report 707 Barnes H, Sissons P, Aston J, Dewson S (2010) Early Implementation Study of the introduction of Employment Support Allowance DWP Research Report 631 References

Large increase in claiming for sickness benefits in UK from 1980s onwards. Similar patterns in other European countries (Houston and Lindsay, 2013). Reforms to sickness benefits from 2003 on – introduction of Pathways to Work (2003); Reforms to PCA (2007); Introduction of ESA for new claims (2008); Extension to existing IB claimants (2011). Incapacity Benefit claim numbers tend to be highest in weakest labour markets (Beatty and Fothergill, 1997; Beatty et al, 2009). These areas also saw the biggest growth in unemployment in the recession (Sissons, 2009). Background

3,650 ESA claimants interviewed 8-10 months after initial claim; 1,842 followed-up 6-8 months later Survey covered: Pre-claim employment experiences Health Claim experiences Medical assessment WFIs Appeals Destinations New claimants only Notes on the study

WCA results – change over time (Results of completed initial WCA assessments for new claims [excludes IB reassessment]. Source: DWP, 2012)

Routes onto ESA (Source: ESA claimant survey)

Main health conditions (Source: ESA claimant survey – conditions here self-reported)

1 in 5 conditions were directly work-related (1 in 3 for musculo- skeletal conditions) Half had a fluctuating condition 2/3 had multiple health problems Around 1 in 3 had both a physical and a mental health condition 8 in 10 were receiving treatment and almost 4 in 10 awaiting further treatment Health conditions: 2

Other characteristics (Source: ESA claimant survey; Labour Force Survey Q3 2010)

Other characteristics: 2 (Source: ESA claimant survey)

Barriers to work: health plus… (Source: ESA claimant survey. Shows most widely cited barriers, claimants could report more than one barrier)

WRAG – a complex picture

Employment trajectory – work origins

Employment trajectory – non-work origins

Factors influencing a return to work among ESA claimants - men Recovery from health problem Being in employment immediately prior to their claim Health ‘getting better’ Having some work or academic qualifications Having a musculoskeletal condition Having a consistent longer-term work history

Recovery from health problem Health was not ‘getting worse’ Being in employment immediately prior to their claim Being aged Factors influencing a return to work among ESA claimants - women

The ESA population has a comparatively disadvantaged profile, but is heterogeneous Those who enter the benefit from work tend to leave most quickly Improved health and recent work experience appear to drive employment outcomes Diverse and complex circumstances require differentiated employment support – health and wider employability barriers (applies to FFW group as well) IB reassessment will have older profile, worse health, and be more concentrated in weakest labour markets Conclusions